Ok, so I evicted some tenants last year, now getting garnishment payments. We had our attorney do all the filings and leg work in exchange for paying him 20% of what is recovered. My question is, can I add that to what is owed when we get towards the end of scheduled payments? Our lease DOES say that we can add "costs of collection", so I think the answer is YES...but wondered what you folks think. Below is an example...

Tenant owes $4,800 at move out...pays $400/month for one year. Attorney gets 20%, or $960. Can I add the $960 to what is owed and request this via the court?

And yes, we are also entitled to interest, which my attorney says you calculate towards the end of payments and add to the amount owed.

I would have to go read our statutes To be positive on this but

1 In MO I believe we can charge collection fees. I do it all the time. MYOB out of GA talks about this Extensively

2. In Missouri Garnishments the interest is supposed to be collected and paid before the amounts awarded are paid. I brought this to our court's attention and so instead of me having to sign paperwork saying tenant was paid in full Court told tenant they still owed about $1000

Thanks SWMO...

I don't see how the interest can be calculated in advance in my case, as I don't get a set amount each month. Instead it's a percentage of his pay, so it varies based on how many hours, vacations, overtime, etc.

Yes.

But as we all know,

what the lease says,

being awarded and recovering all,

I add the attorney's fee onto what the tenant owes during evictions with no problems.

My lease states tenant is responsible for attorney's fees, collection fees and court costs.

I don't see why it would not be the same with what you are doing.

Just got a $20 check from my attorney last week. Deadbeat started paying on her own a couple months back. With the added interest she will never get it paid off at this rate.

Ouch on no legal fees.

Used to be able to get court costs, attorney's fees and collections fees plus the interest.

Last judge decided long ago that it wasn't fair to charge all that to the deadbeat tenant. Kept it all except the collections fees. Old agency I used charged 30% to the tenant. Now if I turn something over to them they basically get half.